Are excess scholarships taxed by the Canadian Government?

I am a first year student at a Canadian University. I received some scholarships for my first year. After the fees were paid, I received some money back from the university due to excess funds. I received a T4A which said I have to state the excess amount under "Other Income." I thought scholarships were tax-free?? Also, I paid for my books with my own earnings from working at a part-time job.

I would really appreciate it if someone could provide me with a step-by-step detailed answer as to what I should do when I am filing my return. Also, I received a government scholarship. Is that taxable as well?

Scholarships and bursaries are normally not taxable, as long as you use them for a program that entitles you to claim the Education Amount (normally this means you attend an accredited school). I just read that directly from the CRA's website:
http://www.cra-arc.gc.ca/tax/individuals...
"The full amount of scholarships, fellowships, or bursaries that are received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount are not taxable and are no longer reported as income on your tax return.

If you are not eligible for the education amount, report on line 130 [other income] only the part of the post-secondary scholarships, fellowships or bursaries that is more than $500."

But you said the university gave you money back. Does this mean the scholarship is paid directly to them normally, just to cover your expenses? If so, that could be why this is "income" ; the university deemed that portion of the scholarship was not being used for an Eligible Program but for your own use instead.

You can phone your university's accounting department and ask for a more detailed explanation. This would be the office where you go to pay tuition or fees.

When you file your taxes though, remember you get credit for tuition, for textbooks, and also a credit just for being a student.